The Business Bytes
New Delhi, December 3, 2024 (TBB Bureau): India’s power consumption witnessed a robust increase of 5.14 per cent in November 2024, reaching 125.44 billion units compared to 119.30 billion units during the same period last year, according to official data.
The surge in energy demand is seen as a positive indicator of heightened commercial and industrial activity, signalling a continued recovery and momentum in the country’s economic landscape.
A report by ICRA highlighted that while growth in power demand moderated in previous months due to heavy rainfall and a high statistical base, the full-year growth is anticipated to remain stable between 5.5 per cent and 6 per cent.
November also saw a significant improvement in coal stock levels at power plants, a critical factor for ensuring uninterrupted electricity supply. Coal stocks rose to an average of 13 days as of November 26, up from 11.6 days at the end of October. This marks a reversal of a six-month declining trend, though the levels remain below the normative standard.
Another notable trend was the decline in spot power tariffs. The average tariff in the day-ahead market (DAM) of the Indian Energy Exchange (IEX) dropped to ₹3.3 per unit in November, a substantial decrease from ₹3.9 per unit in October. This is the lowest rate in three years and aligns with the historic long-term average of ₹3 to ₹3.5 per unit. The moderation in tariffs is attributed to subdued demand growth and increased generation from hydro and nuclear power sources.
The highest supply on a single day (peak power demand met) during November marginally rose to 207.42 GW from 204.56 GW in the same month last year. This comes after the nation recorded an all-time peak demand of 250 GW in May 2024, surpassing the previous record of 243.27 GW in September 2023.
